Publication

This report focuses on the economic consequences of inaction with respect to the United States' fiscal and current account deficits. It explains that the longer the US waits, the greater the likelihood of a global financial and economic disruption, stagnant economic growth, and even recession. The author argues that a prolonged decline in the dollar's value will erode US dominance in the political and security spheres, and reduce US leverage in international financial institutions such as the World Bank and International Monetary Fund (IMF). He concludes with a set of policy recommendations aimed at substantially reducing the American current account deficit.